Boston Beer (SAM) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: N/A
• Average Volume (3M): 271.33K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.30
• Revenue Growth: 2.46%
• EPS Growth: -7.28%
• Country: US
• Employees: 2,537
• Sector: Consumer Defensive
• Sector Strength: 48
• Industry: Beverages - Alcoholic
• EPS (TTM): 5.45
• Shares Outstanding: 8,820,623
• 10 Day Avg. Volume: 209,404
• 30 Day Avg. Volume: 271,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 2.04
• Enterprise Value/Ebitda: 7.84
• 1Y Price Target: $241.93
• Price Target Upside: 8.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 75 Outperform
• Price Target: $251.00 ▲(12.62% Upside)

Boston Beer demonstrates strong financial performance with solid cash flow and a robust balance sheet, contributing significantly to its overall score. The earnings call provided a mixed outlook, with notable achievements in margin expansion but challenges from economic pressures. Technical indicators show moderate bullish momentum, while valuation metrics suggest the stock is relatively expensive.

Positive Factors

Earnings Beat

Shares will likely be rewarded as a result of the earnings beat and higher outlook for gross margin.

Financial Performance

Adjusted operating income has increased by approximately 21%, indicating some financial improvement.

Leadership Change

Jim Koch's return to the helm should be well received, as his succession planning has always been important to investors.

Negative Factors

Market Headwinds

There are continued topline pressures due to macroeconomic, social/political, and weather headwinds.

Structural Demand Shift

There is a forecast of structural headwinds to alcohol consumption in the US due to demographics, health and wellness, moderation trends, and cannabis.

Volume Challenges

Current volume challenges have not shown any meaningful signs of improvement.

Boston Beer Business Overview & Revenue Model

Company Description

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, and hard seltzers under the Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head, Angel City, Coney Island, Concrete Beach brand names. The company markets and sells its products to a network of approximately 400 wholesalers in the United States, as well as international wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other retail outlets. It also sells in products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.

How the Company Makes Money

Boston Beer generates revenue primarily through the sale of its alcoholic beverages, including beers, ciders, and hard seltzers. The company operates on a direct-to-consumer model as well as through distribution agreements with wholesalers and retailers across the United States and internationally. Key revenue streams include the sale of packaged products (cans and bottles) and draft beer served in bars and restaurants. The company's innovative product development, seasonal offerings, and limited-edition releases also help to drive sales. Additionally, partnerships with distributors and retailers enhance market reach and brand visibility, contributing to its overall earnings.

Boston Beer Financial Statement Overview

Summary

Boston Beer is in a solid financial position with stable revenue growth and strong cash flow generation. While profitability metrics suggest areas for operational improvements, the company maintains a healthy balance sheet with low leverage, supporting its ability to invest in growth opportunities.

Income Statement

Boston Beer shows solid profitability with a healthy gross profit margin of 45.1% and a net profit margin of 3.8% in TTM (Trailing-Twelve-Months). The revenue growth rate is moderate at 5%, indicating stable sales performance. However, EBIT and EBITDA margins are relatively low at 5% and 11.7%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.05, indicating low leverage and financial stability. The equity ratio stands at 71.9%, reflecting a strong capital structure. However, the return on equity (ROE) is modest at 8.7%, pointing to moderate profitability for shareholders.

Cash Flow

Boston Beer's cash flow is strong, with a free cash flow growth rate of 28.6% in TTM, highlighting effective cash management. The operating cash flow to net income ratio is 3.6, and the free cash flow to net income ratio is 2.8, both indicating excellent cash conversion and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.11B	2.01B	2.01B	2.09B	2.06B	1.74B
Gross Profit	952.71M	893.73M	852.37M	861.99M	797.79M	814.45M
EBITDA	247.56M	245.78M	209.96M	242.67M	87.13M	317.44M
Net Income	79.60M	59.70M	76.25M	67.26M	14.55M	191.96M
Balance Sheet
Total Assets	1.27B	1.25B	1.43B	1.42B	1.39B	1.38B
Cash, Cash Equivalents and Short-Term Investments	212.43M	211.82M	298.49M	180.56M	26.85M	163.28M
Total Debt	43.86M	35.94M	45.27M	54.14M	61.48M	67.40M
Total Liabilities	355.87M	333.83M	352.06M	352.22M	408.17M	421.86M
Stockholders Equity	912.34M	916.19M	1.08B	1.07B	983.41M	956.97M
Cash Flow
Free Cash Flow	221.87M	172.62M	201.06M	109.36M	-91.62M	113.41M
Operating Cash Flow	286.21M	248.89M	265.15M	199.94M	56.30M	253.41M
Investing Cash Flow	-64.30M	-96.25M	-62.38M	-88.51M	-146.62M	-139.12M
Financing Cash Flow	-228.76M	-239.31M	-84.84M	2.80M	-6.64M	12.32M

Boston Beer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 222.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAM, the sentiment is Positive. The current price of 222.87 is above the 20-day moving average (MA) of 219.42, above the 50-day MA of 208.45, and below the 200-day MA of 242.45, indicating a neutral trend. The MACD of 2.33 indicates Positive momentum. The RSI at 55.64 is Neutral, neither overbought nor oversold. The STOCH value of 49.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SAM.

Boston Beer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAM	75 Outperform	$2.35B	30.84	8.15%	―	2.46%	-7.28%
CCU	75 Outperform	$2.25B	14.41	10.15%	3.70%	13.92%	32.69%
BUD	75 Outperform	$117.99B	16.54	8.97%	1.77%	-2.06%	21.03%
ABEV	74 Outperform	$35.15B	13.36	15.08%	2.07%	-0.79%	-10.83%
TAP	68 Neutral	$9.95B	9.90	7.79%	3.71%	-5.48%	-6.99%
Sector *	63 Neutral	$20.49B	14.78	-2.88%	3.11%	1.86%	-5.76%
STZ	60 Neutral	$26.67B	49.10	-5.05%	2.78%	-0.47%	-117.62%

Boston Beer Corporate Events

Boston Beer Grants Stock Award to CFO Amid Transition

On August 11, 2025, Boston Beer Company’s Board of Directors granted a restricted stock award valued at approximately $1.2 million to Treasurer and CFO Diego Reynoso, aimed at retention amid a CEO transition. Additionally, the company initiated a 10b5-1 plan to repurchase up to $50 million of its Class A Common Stock between September 29, 2025, and December 26, 2025, reflecting strategic financial management.

Boston Beer CEO Michael Spillane Steps Down

The Boston Beer Company announced that Michael Spillane will step down as President and CEO on August 15, 2025, for personal reasons, and will remain in an advisory role until March 31, 2026. Jim Koch, the company’s founder and chairman, will resume the role of President and CEO, a position he held from 1984 to 2001. Spillane’s leadership saw the company through a profitable period, and he will continue to influence the company’s strategy as a board member. This leadership transition is expected to maintain the company’s strategic direction and commitment to long-term shareholder value.